Japanese stocks dive to 7-month low on fears of full-blown U.S-China economic war

* Nikkei, Topix hit lowest level since early Jan
* U.S.-China confrontation seen hurting exporters

TOKYO, Aug 6 (Reuters) - Japanese shares plummeted more than
2% on Tuesday to their lowest levels since early January,
spooked by the spectre of a full-blown economic war between the
United States and China after Washington designated China a
currency manipulator.
The Nikkei share average .N225 fell 2.19% to 20,267.17,
after diving 2.94% at one point and hitting its lowest since
Jan. 4. The broader Topix .TOPX lost 2.11% to 1,474.13, also
hitting a seven-month low.
A yearlong U.S.-China trade war took a sharp turn for the
worse as Washington accused Beijing of manipulating its currency
after China let the yuan drop to its lowest point in more than a
decade. Companies with exposure to global trade were badly hit as
the yen has risen, hitting a seven-month high against the
dollar.
Toyota Motor 7203.T and Softbank Group 9984.T , Japan's
two biggest firms by market cap with global presence, fell 3.27%
and 4.2% respectively.
Panasonic 6752.T slumped 3.0%, having lost as much as 4.2%
to hit 3-1/2-year lows while Honda Motor 7267.T fell 2.3%,
hitting three-year lows.
Only about 3% of more than 2,100 listed shares on the main
board rose while 95% of them fell.
Earnings continued to weigh on many shares.
Suzuki Motor 7269.T declined 3.0% after the automaker
posted disappointing quarterly earning results due to slowdown
in India, the most important growth market for the firm. The
shares have lost about half of their value from a record peak
hit almost exactly a year ago.
Maruha Nichiro 1333.T fell 8.2% after the fishery and food
company posted fall in quarterly profits.
Bucking the trend, Suntory Beverage & Food 2587.T rose
4.5% after its April-June profits beat market expectations
Taiyo Yuden 6976.T also held relatively firm after the
Apple supplier posted strong April-June profits. It last stood
down 0.27%.

(Editing by Shri Navaratnam)